HOUSTON, June 5 -- With completion of the fourth and final well in its current drilling program in Ibhubesi field off South Africa, Forest Oil Corp., Denver, said Tuesday there are sufficient reserves and deliverability for development of a natural gas market in that country.
Initial studies have identified potential natural gas markets with takes in the range of 30-200 MMcfd, said company officials.
The final A-Y1 well tested three zones at an aggregate rate of 71.4 MMcfd of natural gas and 1,376 b/d of condensate -- or 80 MMcfd of gas equivalent -- on an 80/64-in. choke.
Three of the four wells drilled under that program, including the A-K1 discovery well, successfully tested at a combined total of 177 MMcfd of gas and 1,900 b/d of condensate, or 190 MMcfd of gas equivalent.
Last year's 3D seismic program revealed 10 anomalies that were targeted in this year's drilling program. All 10 proved to be high quality reservoir sandstones, including eight that were gas-bearing, officials said.
Workers have mapped a 7,600 sq km trend extension into Block 1 to the north of the Ibhubesi field, based on the close correlation of anomalies from an earlier 2D seismic survey to those tested in the 3D area, said Forest officials. The seismic correlations tie to a well drilled in Block 1 that tested natural gas at a rate of 33.1 MMcfd, they said.
Forest Oil has not yet booked any proved reserves associated with Ibhubesi. Those proved reserves cannot be booked until a commercial agreement is signed that supports profitable development of the field, said company officials.
The next step will be to get third-party verification of the reserve figures, followed by negotiation of commercial contracts to sell and deliver the gas. Forest officials said they could begin delivery of that gas as early as 2004, through subsea development.
Forest Oil is operator with 70% working interest in that project. Its two partners include the Anschutz Overseas Corp. and Mvelaphanda Holdings.
